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Heat oil in a small skillet over medium heat.
Add chopped shallot and cook until softened and slightly translucent.
Add sliced mushrooms and cook until they release moisture and begin to brown.
Season with paprika, salt, garlic powder, and black pepper.
Cook until mushrooms are lightly caramelized.
Pour in the cream and let it gently simmer for 2–3 minutes until slightly thickened.
Add the slice of cheddar and stir until melted and combined.
The sauce should be creamy and lightly thick and not watery.
Make three small wells in the creamy mushroom mixture.
Crack the eggs into the wells. Add pinch of salt and pepper on the eggs.
Cover the pan with a lid and cook on low heat until egg whites are set but yolks remain soft (about 5–7 minutes).
Drizzle with chilli oil.
Sprinkle with chopped dill and grated parmesan.
Serve immediately with toasted bread or warm flatbread.